CIMdata PLM Industry Summary Online Archive
10 July 2009
Financial News
Infosys Technologies Announces Results for the Quarter Ended June 30, 2009
Q1 Revenues Declined by 2.9% Year on Year; Sequentially Grew by 0.1%
Highlights
Consolidated results for the quarter ended June 30, 2009
- Consolidated revenues are expected to be in the range of $ 1,110 million
and $ 1,130 million; YoY decline of 8.7% to 7.1%
- Consolidated earnings per American Depositary Share are expected to be
in the range of $ 0.50 and $ 0.51; YoY decline of 10.7% to 8.9%
Fiscal year ending March 31, 2010
- Consolidated revenues are expected to be in the range of $ 4.45 billion
and $ 4.52 billion; YoY decline of 4.6% to 3.1%
- Consolidated earnings per American Depositary Share are expected to be
in the range of $ 1.97 and $ 2.00; YoY decline of 12.4% to 11.1%
"We believe that in the short term the global economic environment will continue to be challenging," said S. Gopalakrishnan, CEO and Managing Director. "We are working closely with our clients to help them navigate the downturn. We continue to invest in the future to take advantage of the growth opportunities in the medium to long term."
Business outlook
The company's outlook (consolidated) for the quarter ending September 30, 2009 and for the fiscal year ending March 31, 2010, under International Financial Reporting Standards (IFRS), is as follows:
Outlook under IFRS#
Quarter ending September 30, 2009
- Consolidated revenues are expected to be in the range of $ 1,110 million
and $ 1,130 million; YoY decline of 8.7% to 7.1%
- Consolidated earnings per American Depositary Share are expected to be
in the range of $ 0.50 and $ 0.51; YoY decline of 10.7% to 8.9%
Fiscal year ending March 31, 2010
- Consolidated revenues are expected to be in the range of $ 4.45 billion
and $ 4.52 billion; YoY decline of 4.6% to 3.1%
- Consolidated earnings per American Depositary Share are expected to be
in the range of $ 1.97 and $ 2.00; YoY decline of 12.4% to 11.1%
# Exchange rates considered for major global currencies: AUD / USD - 0.81; GBP / USD - 1.66; Euro / USD - 1.41
Expansion of services and significant projects
Infosys continues to win transformational deals, solution-based engagements, and systems integration projects as clients seek a trusted partner in their journeys.
Clients are leveraging Infosys' industry expertise on projects directed at gaining a competitive advantage. A leading manufacturer and marketer of beauty care products, Alberto Culver Company, selected us to enhance its trade promotion effectiveness. We will deliver advanced category analytics services to help the company improve pricing, promotions and category management decisions. A developer and marketer of video games software and content is using our enterprise collaboration platform to ensure sustained community interaction and innovation management. We defined a collaboration platform strategy and roadmap for a high tech manufacturer, and the implementation is expected to result in significant cost savings and enhanced customer satisfaction. We are helping a high tech major, through our Supply Chain Visibility platform, to enable better KPI tracking, incident management, SLA compliance, and overall decision making. We are also helping the company to develop a repeatable and standardized approach for delivering services. A manufacturing major awarded us a deal to standardize its global processes as per contextual business needs. A premium food retailer, Waitrose, selected us as its partner for a multi-channel commerce transformation program. A transportation major engaged us to meet its strategic needs of global product development by integrating engineering and manufacturing data.
Infosys' consulting services is contributing to growth. A provider of workflow solutions sought our consulting services for a transformational project deploying a human capital management system that supports global and local processes in more than 25 countries. The client also engaged us to transform its end-to-end business processes to accelerate integration of acquisitions and speed up time-to-market for new products.
Market leaders across the world are benefiting from Infosys' engineering services, particularly its Product Lifecycle Management (PLM) expertise. A global manufacturer engaged us for PLM services, including roadmap definition and assessment. In addition, we are working with another global manufacturer to support its PLM program, and a global consumer packaged goods company to transform its PLM platform.
Infosys continues to strengthen its position in the banking and capital markets sector. A leading bank chose us to help it architect a future-state platform for client payment authorizations as well as conduct performance testing on one of its key online banking channels. Another leading bank selected us to provide functional consulting support for a Human Resources Management System (HRMS) rollout across 36 countries. Telstra, Australia's leading telecommunications and information services company, selected us as one of its key strategy partners to support its five-year AUD 450 million contracts for application development and maintenance.
We developed and delivered a global template to an agribusiness to establish a scalable enterprise computing platform. We implemented a forecasting and planning application at a large airline company which involved planning ground manpower resources to service airplanes. As a result, the company improved processing by more than 40 percent.
Learning Services' solutions have been acclaimed by our clients. During fiscal 2008, we had introduced 'Learning Services' that modernizes and integrates traditionally separate functions such as training, learning, e-learning, talent development, and knowledge management. During Q1 of this fiscal, a high tech manufacturer sought our expertise to create and execute a strategy to design change communication, and build content to help users adapt to new technologies in the social arena. In addition, Learning Services was awarded a project by a consumer electronics company to develop a technology architecture to support the induction of new customer service agents.
"The global currency markets continue to be volatile. During the quarter, the rupee appreciated against the US dollar," said V. Balakrishnan, Chief Financial Officer. "We continue to focus on margins while making the right investments to accelerate growth."
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